News Briefs

THE DAILY FED

News Briefs

The following news summaries are from OPM AM, the daily newsletter of the Office of Personnel Management. OPM AM is available on OPM Mainstreet, the agency's electronic bulletin board, at 202-606-4800.

THE FEDERAL DIARY--"Folks who are sick of political news are almost home free. Almost. After tomorrow's election, there will be the usual lengthy period of analysis (and over-analysis) from the media as to why whatever happened. The good news for folks who aren't political junkies is that the post-election analysis period won't last as long as the pre-election comment period. Having said all that, today's final political shots come from two Monday Morning Quarterbacks who have different--messages for their fellow federal workers" (Monday, The Washington Post)...."The survivor of any federal worker who dies as a result of a job-related injury is entitled to a $10,000 death gratuity benefit because of legislation enacted this year. That one-time payment is in addition to other life insurance or survivor benefits. Congressional sources who track this kind of legislation aren't sure who introduced the proposal or the significance of the fact that it is retroactive to August 1990. The new payment is one of a number of fed-friendly measures that became law in the closing days of Congress" (Sunday, The Washington Post).

DOWNSIZING ISN'T BAD NEWS FOR EVERYBODY--"It turns out that the dreaded downsizing of government hasn't had as dire results as predicted. Far from spawning waves of layoffs, staff squeezing so far has simply boosted the number of retirements and resignations, primarily through buyout programs. Instead of decreasing civil service diversity, the cuts have boosted the percentages of full-time federal jobs held by women and minorities, according to new statistics compiled by the Office of Personnel Management and the Merit Systems Protection Board" (Government Executive, October 1996).

CHAIN DRUG LEADERS WANT CONGRESS TO INVESTIGATE FEHBP CO-PAYS--"Chain drug industry leaders urged Congress to investigate the Federal Employees Health Benefit Program, charging that the stiff new 20 percent co-pay penalty imposed on government retirees who continue to have their prescriptions filled by retail pharmacies may actually increase costs. The new FEHBP co-pay, which is imposed on retirees who have prescriptions filled by drug stores, but not via Merck-Medco's mail order pharmacies, has been a source of concern for retail pharmacy leaders since the new requirements were imposed earlier this year" (Drug Store News, September 23).

FEHBP PREMIUMS COULD RISE IF PRESENT FORMULA EXPIRES--"Federal Employees Health Benefits Program (FEHBP) costs for federal annuitants and employees could dramatically increase in 1999 if the present premium formula is allowed to expire. According to the Office of Personnel Management (OPM), annual premiums could increase by $164 for self only policies and $326 for family plans. OPM presently determines the government contribution for FEHBP premiums by averaging the five largest plans with a sixth plan formerly carried by Aetna....The Omnibus Budget Reconciliation Act of 1993 extended the Phantom Big Six' formula through contract years 1997 and 1998....Unless it is reauthorized, the phantom premium cannot be used beyond the 1998 contract year" (Retirement Life Magazine, October 1996).